OVERLAND PARK, Kan.--(BUSINESS WIRE)--Waddell & Reed Financial, Inc. (NYSE: WDR) today announced that the
previously disclosed consulting agreement with former portfolio manager
Ryan Caldwell has not come to fruition and is not being pursued.

Caldwell, formerly co-portfolio manager of the company’s Asset Strategy
portfolios—including mutual funds and institutional accounts—resigned
from the firm effective June 15, 2014. At that time, the firm indicated
that Waddell & Reed and Caldwell would enter a two-year consultancy
agreement. After further discussion and consideration, it was determined
that the consulting agreement was not essential to the ongoing
investment process.

Michael Avery, who has managed the Asset Strategy portfolios for 17
years, continues as portfolio manager and leads the five-member Asset
Strategy team.

“The fund remains in very good hands; we have a process that is strong,
seamless and repeatable,” said Avery. “As we actively seek to add to our
experienced team from inside our organization, we are looking to people
who currently have portfolio management experience with solid
performance in their own right.”

Through its subsidiaries, Waddell & Reed Financial, Inc. provides
investment management and financial planning services to clients
throughout the U.S. The firm had approximately $131 billion in total
assets under management at March 31, 2014. Waddell & Reed Investment
Management Company serves as investment advisor to the Waddell & Reed
Advisors Group of Mutual Funds, Ivy Funds Variable Insurance Portfolios
and InvestEd Portfolios, while Ivy Investment Management Company serves
as investment advisor to the Ivy Funds. Waddell & Reed, Inc. serves as
principal underwriter and distributor to the Waddell & Reed Advisors
Group of Mutual Funds, Ivy Funds Variable Insurance Portfolios, and
InvestEd Portfolios, while Ivy Funds Distributor, Inc. serves as
principal underwriter and distributor to the Ivy Funds.

Investors should consider the investment objectives, risks, charges
and expenses of a fund or of a portfolio and the variable insurance
product carefully before investing. For a prospectus, or if available, a
summary prospectus, containing this and other information for the
Waddell & Reed Advisors or Ivy Funds or for the variable insurance
products, call your financial advisor or visit www.waddell.com.Please read the prospectus or summary prospectus carefully before
investing.

Investment return and principal value will fluctuate, and it is
possible to lose money by investing. Past performance is not a guarantee
of future results.

Risk factors. As with any mutual fund, the value of the Fund’s
shares will change, and you could lose money on your investment. The
Fund may allocate from 0 to 100% of its assets among stocks, bonds and
short-term instruments of issuers around the globe, as well as
investments in precious metals and investments with exposure to various
foreign securities. International investing involves additional risks,
including currency fluctuations, political or economic conditions
affecting the foreign country, and differences in accounting standards
and foreign regulations. These risks are magnified in emerging markets.
Fixed-income securities are subject to interest-rate risk and, as such,
the net asset value of the Fund may fall as interest rates rise.
Investing in high-income securities may carry a greater risk of
nonpayment of interest or principal than higher-rated bonds. The Fund
may seek to hedge market risk on various securities, increase exposure
to various markets, manage exposure to various foreign currencies,
precious metals and various markets, and seek to hedge certain event
risks on positions held by the Fund. Such hedging involves additional
risks, as the fluctuations in the values of the derivatives may not
correlate perfectly with the overall securities markets or with the
underlying asset from which the derivative’s value is derived. Investing
in commodities is generally considered speculative because of the
significant potential for investment loss due to cyclical economic
conditions, sudden political events, and adverse international monetary
policies. Markets for commodities are likely to be volatile and the Fund
may pay more to store and accurately value its commodity holdings than
it does with the Fund’s other holdings. These and other risks are more
fully described in the Fund’s prospectus. Not all funds or fund classes
may be offered at all broker/dealers.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are
only available as investment options in variable life insurance policies
and variable annuity contracts issued by participating insurance
companies. Annuity and life insurance guarantees are based on the
financial strength and claims-paying ability of the issuing insurance
company. The guarantees have no bearing on the performance of a variable
investment option. Variable investment options are subject to market
risk, including loss of principal. There are charges and expenses
associated with annuities and variable life insurance products,
including mortality and expense risk charges, management fees,
administrative fees, expenses for optional riders and deferred sales
charges for early withdrawals. Withdrawals before age 59 1/2 may be
subject to a 10% IRS tax penalty and surrender charges may apply.

Forward-Looking Statements

This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, which
reflect the current views and assumptions of management with respect to
future events regarding our business and industry in general. These
forward-looking statements include all statements, other than statements
of historical fact, regarding our financial position, business strategy
and other plans and objectives for future operations, including
statements with respect to revenues and earnings, the amount and
composition of assets under management, distribution sources, expense
levels, redemption rates and the financial markets and other conditions.
These statements are generally identified by the use of such words as
"may," "could," "should," "would," "believe," "anticipate," "forecast,"
"estimate," "expect," "intend," "plan," "project," "outlook," "will,"
"potential" and similar statements of a future or forward-looking
nature. Readers are cautioned that any forward-looking information
provided by or on behalf of the Company is not a guarantee of future
performance. Actual results may differ materially from those contained
in these forward-looking statements as a result of various factors,
including but not limited to those discussed below. If one or more
events related to these or other risks, contingencies or uncertainties
materialize, or if our underlying assumptions prove to be incorrect,
actual results may differ materially from those forecasted or expected.
Certain important factors that could cause actual results to differ
materially from our expectations are disclosed in the "Risk Factors"
section of our Annual Report on Form 10-K for the year ended December
31, 2013, which include, without limitation:

The loss of existing distribution channels or inability to access new
distribution channels;

A reduction in assets under our management on short notice, through
increased redemptions in our distribution channels or our Funds,
particularly those Funds with a high concentration of assets, or
investors terminating their relationship with us or shifting their
funds to other types of accounts with different rate structures;

The adverse ruling or resolution of any litigation, regulatory
investigations and proceedings, or securities arbitrations by a
federal or state court or regulatory body;

The introduction of legislative or regulatory proposals or judicial
rulings that change the independent contractor classification of our
financial advisors at the federal or state level for employment tax or
other employee benefit purposes;

Our inability to provide sufficient capital to support new investment
products;

The ability of mutual fund and other investors to redeem their
investments without prior notice or on short notice;

Our inability to implement new information technology and systems, or
inability to complete such implementation in a timely or cost
effective manner;

Non-compliance with applicable laws or regulations and changes in
current legal, regulatory, accounting, tax or compliance requirements
or governmental policies;

A decline in the securities markets or in the relative investment
performance of our Funds and other investment portfolios and products
as compared to competing funds; and

The foregoing factors should not be construed as exhaustive and should
be read together with other cautionary statements included in this and
other reports and filings we make with the Securities and Exchange
Commission, including the information in Item 1 "Business" and Item 1A
"Risk Factors" of Part I and Item 7 "Management's Discussion and
Analysis of Financial Condition and Results of Operations" of Part II to
our Annual Report on Form 10-K for the year ended December 31, 2013 and
as updated in our quarterly reports on Form 10-Q for the year ending
December 31, 2014. All forward-looking statements speak only as the date
on which they are made and we undertake no duty to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.